If the U.S. wants more than 50% of all cars on the roads to be electric by 2030, we need to have far more charging stations. Right now, according to Blink Charging (NASDAQ:BLNK), we have just under 130,000 electric vehicle (EV) charging ports at 50,401 charging stations set up in the U.S. That’s not nearly enough, especially if the Biden Administration is hoping for further EV adoption.
And while the federal government wants to build at least 500,000 public EV charging stations to help, that still may not be enough. In fact, according to McKinsey & Co., if the U.S. wants to meet its goal, we’ll need about 1.2 million public and 28 million private EV charging stations set up. That, according to Blink Charging is “approximately 20 times more charging stations than are currently installed in the United States in 2023.” That being said, investors may want to consider these three EV charging stocks.
EV Charging Stocks: ChargePoint (CHPT)
ChargePoint (NYSE:CHPT) has been in a sustained downtrend for the last two years. But don’t write it off just yet. For one, CHPT is a top pick at TD Cowen thanks to its hardware and subscription-based model, first-mover advantage, and strong customer list, as noted by CNBC. The firm also has an “outperform” rating on the stock with an $11 price target. That’s 119% above current prices.
RBC Capital Markets also has an “outperform” rating on the stock. “The robust product portfolio, differentiated strategy, and asset-light business model position it to be a key beneficiary of positive secular trends in vehicle electrification and growing demand for charging infrastructure,” analysts Chris Dendrinos and Laura Deng said, as quoted by Seeking Alpha.
EVgo (EVGO)
EVgo (NASDAQ:EVGO) has also been in a solid downtrend for the last two years. However, once the U.S. gets far more serious about EV adoption, and the EV charging stations desperately needed, then EVGO can flourish. Right now, the most impressive part of EVGO is its earnings.
Not only did its EPS loss of eight cents beat by 10 cents, revenue of $50.6 million was $20.9 million better than expectations. That revenue was up 457% year-over-year, as well. Plus, EVGO added another 82,000 customer accounts. Analysts at RBC Capital just initiated coverage of EVGO, with a “sector perform” rating, with a $5 price target. The firm says the auto industry is moving towards electrification. It also believes EVGO is well-positioned to benefit from the trend.
SPDR S&P Kensho Intelligent Structures ETF (SIMS)
Or, if you’d prefer to diversify at less cost with companies involved in smart building infrastructure, smart power grids, and intelligent transportation infrastructure, there’s the SPDR S&P Kensho Intelligent Structures ETF (NYSEARCA:SIMS). With an expense ratio of 0.45%, some of its holdings include EV charging stocks, such as Wallbox (NYSE:WBX), Blink Charging, ChargePoint, and EVgo.
Year-to-date, the ETF has been essentially flat, bouncing between $30 and $38 a share. At the moment, it’s back to the lower end of the channel, where it could set up to bounce again. In fact, each time the SIMS ETF gets this low on relative strength, MACD, and Williams’ %R, the stock starts to pivot in the other direction. I’m hoping to see it happen again, with a potential test of $38 a share from its current price of $32.10.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
